Funny NYPD wrote:
> The long waiting Au SAE J1939 simulator Gen II editions are now available.

Hi Funny,

Back in May, I sent you a private message expressing our company's interest 
in selling your products on http://www.obd2cables.com. I want to repeat some 
of the things I said, and provide additional comments for the benefit of 
other list members (especially small business owners involved in 
manufacturing).

- AuG's quantity discount is 5%. With that kind of razor-thin profit margin, 
it would be hard to just break even. Most vendors that we deal with, offer a 
minimum 40% discount off their retail price (and we do the same for our 
distributors).

- AuG requires that resellers match the price on their website. None of our 
vendors dictate what our retail price should be, and we have never imposed 
such requirement on companies that sell our products. Competition benefits 
you, the customer, and your resellers.

- "The price break only applies to the SIMJ1939-xx and accessories; no price 
break on annual support & annual upgrade, and license management." 
Translation: your resellers have zero incentive to sell annual support, 
upgrades, and license management.

- None of our vendors have ever insisted on us providing information about 
the "size and structure of our company", or monthly visitors to our site. 
Such information is irrelevant in a cash transaction. Why do you need it, 
anyway?

I finished my email with:

"Please let me know whether you are willing to compromise on the above
issues. Your products seem to offer functionality similar to DGTech and
Vector products, at a lower cost, and we feel that our website is a perfect
vehicle to sell your simulators."

I never heard back from Mike or yourself, so I have to assume you aren't 
willing to compromise. Which is astonishing to me, since the transaction 
would have been virtually risk-free to you (prepaid), and could have easily 
tripled your sales. The stand-alone J1939 simulators we currently offer on 
our site are selling like pancakes (in large part thanks to our focused 
marketing effort):

http://www.obd2cables.com/products/product_info.php?products_id=118

By choosing to keep the price/cost ratio so high, and making it difficult 
for companies to sell your products, you provide a huge incentive for other 
companies to create devices with similar functionality. I won't be surprised 
if in six months, there will be a simulator with an identical feature set, 
selling for less than half the price. It's important to remember that it's 
better to sell 1000 units at $100 a pop, than 10 at $1000.

Best regards,

Vitaliy

-- 
http://www.piclist.com PIC/SX FAQ & list archive
View/change your membership options at
http://mailman.mit.edu/mailman/listinfo/piclist